The United States is in talks with the European Union about electric car tax credits for COP27
Inflation Reduction Act officials, who oversee the bill’s implementation, heard concerns from their European counterparts on Wednesday about the potential trade tensions from the cleaner vehicle subsidies in the Biden administration’s bill.
President Joe Biden appointed John Podesta to oversee the implementation of the climate-related measures within the sprawling spending bill. During the COP27 climate summit, Podesta told reporters that the United States has discussed and understood the concerns raised by European officials about the competitive disadvantage its electric vehicle and battery manufacturers face as a result of the bill’s electric vehicle tax credits.
German Finance Minister Christian Lindner said that the United States hasn’t fully grasped the severity of our concerns about the consequences, and French Finance Minister Bruno Le Maire said that the law poses a serious threat to European companies and the EU should take action immediately to combat it.
Podesta said on Wednesday that his team is listening to the concerns of the community. “We are in dialogue about the particular structure…of the vehicle credits that the Europeans have raised.”
Biden signed in August the $430 billion legislation into law, which includes key tax credits tied to domestic manufacturing and wage requirements.
Source- Reuters
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